UBS to proceed workforce job cuts following Credit score Suisse acquisition

Investing.com — UBS Group AG (NYSE:UBS) is ready to proceed decreasing its workforce following its historic acquisition of Credit score Suisse, mentioned CEO Sergio Ermotti in an interview to Bloomberg. The Swiss lender is aiming to chop an extra $5.5 billion in prices, on high of the $7.5 billion already saved because the acquisition. Ermotti acknowledged that the cost-cutting measures will inevitably result in redundancies, however expressed a desire for counting on voluntary departures when potential.

The UBS workforce expanded considerably from under 75,000 to roughly 120,000 after the acquisition of Credit score Suisse in an emergency government-brokered operation almost two years in the past. Since then, the quantity has decreased by about 10,000. UBS has not but set a goal for the whole headcount.

The financial institution additionally plans to make important financial savings by discontinuing the usage of Credit score Suisse’s previous IT methods. A significant a part of this course of, shifting shopper knowledge in its house market of Switzerland, is deliberate for this yr.

Ermotti famous that about 7% of UBS workers depart the corporate voluntarily annually. He additionally identified that many workers are nearing retirement, which might probably reduce the impression of compelled job cuts.

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